Economic Analysis of Goat Production in Nepal


Goat and sheep production are one of the beneficial sector of livestock production in Nepal. Economic analysis of sheep and goat production can be done with the input and output market price. Economic analysis can be shown in many ways one the method is benefit cost ratio analysis. In Cost all the major inputs are included and in benefit all the major outputs are included.

Economic analysis of Goat production in Nepal

According to (MoALD, 2019) the total population of goat in Nepal is was 12,283,752 and its estimated worth is around Nepales rupee 122,837,520,000. Total chevon production in 2018 was around 73,914 matric ton. If the rate of per kg chevon is consider Nrs.700 then the total output from chevon in Nepal was around Nrs. 73,914,000. Goat is generally marketed in the age of 12-15 months and the marketable time varies according to breed and management practices. If the initial cost of kid of age 2-3 months is 3,000 and its management cost in 1 year will be around 2000 which includes the cost of feed, fodder, water, housing, medicines. Then the marketable goat of around 20-25 kg will cost around 10,000. Which gives the net profit of 5,000 per goat in a year. The cost of production is reduced as the number of herds is increased. Not only the meat or live goat is sold the manure is also sold in a good price. The cost of 50 kg of goat manure is around Nrs.100.

Economic analysis of Sheep production in Nepal

According to (CBS, 2019) the total population of sheep in Nepal was 798,889 in 2018 and the sheep mutton production in same year was around 276,3000 kg. If the estimated price of one sheep is around NRs. 10,000 the total worth from the total population of sheep in Nepal will be around NRs. 7,988,890,000 and if we consider the price of one kg mutton to be around Nrs. 500 then the estimated price of mutton in 2019 was around Nrs. 1,381,500,000. Not only mutton sheep also yields wool twice a year and the total wool production of wool in 2019 was 589,738 kg (CBS, 2019). Wool has its own economic value and the cost of per kg wool is estimated to be around 300 and the estimated economic value from wool in 2019 was around 176,921,400. The cost included in sheep production are initial cost of lamb, cost of feed, fodder and range, labor cost, housing, medicines etc and the output from sheep are mutton, wool and manure. The production of sheep is very profitable as it gives a good amount of return within a year and half. The demand of sheep wool is high and sheep are generally in high demand during January month as it is sacrificed in front of good on Nepal.

Is Goat Farming economically profitable than other ruminants?

Goat has been described as a poor man’s cow (or mini-cow) because of its immense contribution to the poor man’s economy. It plays an important role in the food and nutritional security and are cheaper to maintain, easily available and have a friendly disposition. Goat rearing has distinct economic and managerial advantages over other ruminants because of its less initial investment, low input requirement, higher prolificacy, early sexual maturity, and ease in marketing. It is a multi-purpose animal producing meat, milk, hide, fiber and manure. In hilly areas, goats are also used for hauling light loads. Goat farming requires less capital investment and feeding than compared to other large sized ruminants. Feeding, milking and care of goats do not require much equipment and hard work. Being small-sized animals, goats can easily be managed by women and children. Goats can be raised by landless agricultural laborers, ladies and children because they can thrive well on variety of leaves, shrubs, bushes, kitchen waste etc. They have got increased digestibility of crude fiber and can produce even on poor quality roughages. Four goats can be maintained as cheaply as one indigenous cow. Goats are capable of adapting to various agro-climatic conditions ranging from arid dry to cold arid to hot humid. They can be raised in plains, hilly tracts, sandy zones, high altitudes and in areas where fodder resources are limited and cattle do not thrive. Along with meat goat supply nutritious and easily digestible milk which provide additional income to farmers. In this way we can say that goat farming is more profitable than other ruminants.

Goat farming is economically profitable consider to other ruminate as the Chevon is more popular and higher price as compared to sheep mutton.  Goat farming is comparatively beneficial compared to other ruminants for example. Goat is generally popular for its meat rather than milk. If 100,00 is invested it will be equal to around 30 kids of goat and with the same amount of investment 1 buffalo can be owned. If the management cost of 30 goats in 1 year is 100,000 by the end of the year the prices of 30 goats will be around 350,000 which will give the net profit will be 350,000-100,000-100,000= 150,00 in a year. In case of buffalo if it gives 300 kg of milk which worth about 210,000 and the cost of feed and management of buffalo is around 100,000 and the culling price of buffalo be 50,000 the net profit will be 210,000+50,000-100,000-100,00= 60,000. Here in this example goat farming gives almost 3 times more return compared to buffalo so we can say that goat farming is economically profitable compared to other ruminant production.


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